MINUTES OF REGULAR COMMISSION MEETING
July 19, 2006

1. The meeting was held at the District Building at 5:00 PM on July 19, 2006. Present were:
COMMISSIONERS: Glenn Senter, Jim Moody, Danny Everett, Lynn Aibejeris, Lonnie A. Houck,
and Tommy Mauldin
TCW&SD STAFF: John Gentry, Jim Gooding, David Morgan, and Shirley Shinholser.
Chairman Senter called the meeting to order and declared a quorum present.

2. The meeting was opened with prayer and the Pledge of Allegiance.

3. Our guest, John Cruce, was welcomed and the floor was opened for questions. Mr. Cruce came to hear the discussion relative to obtaining a second meter for irrigation purposes (Old Business, item 1).

4. The minutes of our meeting on June 21, 2006 were presented. A motion was made by Lonnie A. Houck and seconded by Jim Moody to approve the minutes as read. Minutes were adopted unanimously.

5. Staff and Committee Reports

Sewer Project Update - John Gentry

We basically declared final completion as of June 30, 2006 when I joined Fritz Grady of JEA and Curly Cash of Quality Plus Services, Inc. in a walk-through where we noted remaining punch list items. Most of them were paired off to maintenance or warranty leaving very few items to address prior to closure with the completion of the "as built" documents being priority. QPS has agreed to a settlement versus the assignment of $500 per day in liquidated damages. This will be incorporated into the final pay estimate which is being prepared by JEA. We are continuing to monitor "lien satisfaction" as we approach closure. We underwent our EPA Audit on July 12 with Jon Harcum of Tetratech and are expecting notification of few, if any, situations to address. We hired Wayne Butler to mow our spray field for a cost of $300 and to clean up our WWTP fenced area for a cost of $250. We will consider obtaining someone to bale the hay in our spray field in the future, but, in the mean time, we will continue to have Mr. Butler mow the field and clean the fenced area on an as-needed basis. We are investigating the possibility of installing a pump in our pond to irrigate the new grass planted at the WWTP. We have hired Donnie Johnson to assist David in relocating three (3) vent tubes that caused serious parking issues for three (3) customers (Bowden, Millinor, Wray). Unless hardship is determined, customers desiring this treatment in the future must pay for the labor and materials required. Vent tubes that continue to "wilt" may be staked. Grant monies remaining are expected to meet our known expenses (including the WWTP shop/office and our repair inventory) and we are compiling a list of other desired items that we can purchase to deplete all funding. We will continue to perform only the basic lab tests at the WWTP and send our lab samples for DEP to Flowers Chemical Lab every two (2) weeks in an effort to maintain the quality assurance manual requirements. It was originally thought that reaching 75% of our capacity would require action to enlarge our wastewater treatment system; however, in our discussion with Fritz Grady on June 30th, we were advised that, although peak week-ends can maximize our capacity, it is the average daily flow that will determine our expansion needs. Based on that information, it is our opinion that we can accommodate an additional 150-160 connections to be added to our current 330 GPs connected..

· Financial Reports

Shirley Shinholser for Diane Carlton- Director's Report
We experienced a routine month with adjustments totaling $972.23 due to a leak at one meter; GP charges refunded due to an installed GP not being connected properly; a one-time adjustment for a leaky toilet; and late charge adjustments. We issued three (3) turn-off orders for Ball, Bratcher, and DeVane. Ball and Bratcher came immediately to make payment in full and avoid a turn-off. Our remaining and current past due is Ikey DeVane who made a payment of only $50 against his balance of $344.98. Board decided to send Mr. DeVane a letter requiring regular monthly payments of his monthly billing plus a portion of his past due balance not to exceed a period of six (6) months. Thereafter, he is to continue paying his utility bills in full monthly to avoid a future disconnect.

Shirley Shinholser-Financial Report

The conversion of our Operating and Construction checking accounts to interest-bearing accounts resulted in interest income of $82.66 for the last 1/3 of June. We closed the Membership Checking Account after disbursing the funds and created a Savings sub-account entitled "Water Connection Fee" with a starting balance of $26.90. The new CD ($17,062.46) was obtained for one year at 4.35% with a maturity date of 7/17/07. Our only irregular expense for June is to Powell & Jones CPA who incorporated our 9/30/05 audit changes and reclassified a few accounts.

· Management Issues - John Gentry
To be reviewed in Old and New Business.

· Water Operational Issues - Jim Gooding

We are waiting on availability of our back-hoe operator to address a minor leak on Egret at Cedar Island. We experienced a usage of 135,000 gallons of water per day for the week-end of July 4th --- well below our highest usage of 245,000 gallons per day.

· Wastewater Operational Issues - David Morgan

In the process of removing a septic tank mound, a customer (Simpson) uncovered and snatched loose a section of pipe from the valve box to the grinder pump due to the pipe not being buried deeply enough. QPS personnel and I renewed the nipple and fittings in the valve box and reinstalled the pipe at the proper depth.
Customer did not call before digging.

· Phase II Funding - Glenn Senter

We have learned of a new engineering firm with a grants coordinator that has offered assistance for the Phase II funding. John Horvath of JEA thinks the pre-work is near completion. We understand that a Suwannee River Planning Council is working with DCA to review building in coastal high hazard areas.

6. OLD BUSINESS

· Consider Operating Plan/Procedure/Costs for Second Meter for Non-potable Water - John Gentry
After careful consideration and review of various scenarios, a motion was made by Jim Moody that we offer our customers a second meter for non-potable water at an installation cost of $300 with no monthly minimum charge and no administrative costs at this time. All water usage will be recorded in the main meter with the secondary meter used to determine reduction of sewer charges for non-potable water. The motion was seconded by Lonnie A. Houck and unanimously approved. Customers who have shown an interest will be notified of availability. A water easement may be required for some installations.

· Water and/or Sewer Provision for Hamdan Development - John Gentry
Dr. Hamdan has presented payment of $2,000 per unit for the fifteen (15) proposed lots on his property and requested a letter regarding the provision of water and sewer. We will prepare a letter similar to that used for the Bish Clark Subdivision stating that we will make every effort to provide water but sewer will be available only if we are not prohibited by permitting/funding agencies. A Utility Service Agreement will need to be developed to cover the lines for our water AND sewer pipe should it be allowed. We currently have a 4" water line to his existing meter. He will need no less than 3" supply lines for his proposed lots. We can determine and declare in the agreement who pays for what; our estimated costs; and our code/standards for pipe, fittings, etc. that may be required. Easements may also be required.

It is highly recommended that we address this issue with Rural Development prior to writing the letter. They may agree to allow low density developments, which could otherwise install septic tanks or their own wastewater system, to connect to our wastewater system with their blessing. Chairman Senter stated that he will meet with Congressman Boyd's new aide when he comes in August and request assistance in drafting a letter to USDA-RD.

· Water Treatment Plant Building Expansion - John Gentry
Our water operator, Jim Gooding, is in need of office space, storage, restroom facilities, and a shop area at the water treatment plant. We propose doubling the size of the existing area; installing restroom facilities which we can connect to a grinder pump that will discharge into the septic tank at the District Building until we are connected to the centralized wastewater system in Phase II; and providing a shop area for tools and equipment needed for repairs. The proposed expansion will be block structure. The Board granted permission to design the plans, obtain the costs, and obtain a renovation permit from the County being cautious to comply with set back restrictions.

· Electrical Service Provider - John Gentry
A review of the proposal from Ketring Power Technologies, LLC reveals that they are qualified and presented reasonable costs for the service desired. A motion was made by Jim Moody, seconded by Lynn Aibejeris, and unanimously approved that we send Ketring Power Technologies, LLC a letter awarding the business and develop a contract for two (2) years.

· Proposed WWTP O&M Building - John Gentry
We have our floor plan and our bids on the 1500 sq. ft. metal building and foundation; however, Rural Development won't release funds until the construction contract has closed and final payment has been made to Quality Plus Services, Inc. The Board authorized John Gentry to proceed on the purchase and installation of the building once the funding is approved by RD.

7. NEW BUSINESS

· Billing from Smith, Smith, & Moore, Attorneys at Law - John Gentry
We believe that the charges billed for contacting Timothy Brooks regarding his grinder pump installation are covered under the Grant agreement. John Gentry will send Mike Smith a letter opposing the charges. Chairman Senter will also meet with Mike Smith to discuss the issue.

· Timothy Brooks is still denying access to his property for the grinder pump installation and continuing
to use his septic tank. The Board agrees that we should forward this information to the Health Department and let them address the issue. Furthermore, all customers who use our water but continue to use a septic tank versus purchasing a grinder pump shall be reported to the Health Department for enforcement. Customers who fail to pay for grinder pumps installed in error will have the water disconnected and the grinder pump and electrical will be removed. The wet well will remain for future connection.

· Administrative Salaries - John Gentry
EPA was reimbursing TCW&SD for sewer related administrative wages for the General Manager and the Office Manager on an hourly basis. The General Manager, John Gentry, has been receiving a salary to oversee the Water Department and may desire to receive a salary for the sewer division now that construction has been completed. The Office Manager, Shirley Shinholser, is also considering salary versus hourly. Mr. Gentry will review the wages further and present a recommendation at the August meeting.

· New Day and Time for Monthly Board Meetings
After general discussion of times and availability, a motion was made by Lonnie A. Houck to change our meeting time to the fourth (4th) Tuesday at 5:30. The motion was seconded by Tommy Mauldin and unanimously approved.

8. A motion to adjourn was presented, seconded, and approved. Meeting adjourned.

(The next meeting is scheduled for Tuesday, August 22, 2006 at 5:30)

Board Actions:
1) Adopt Minutes of June 21, 2006
2) Approve letter to Ikey Devane regarding past due requiring full payment within six months
3) Approve installation of 2nd meter for non-potable water
4) Approve development of plans for Water Treatment Plant expansion
5) Approve awarding Ketring Power Technologies, LLC a two (2) year contract for electrical services
6) Approve purchase and installation of WWTP building upon RD approval of funds
7) Approve submittal to the Health Department of all water customers who continue to use a septic tank versus connecting to our wastewater system
8) Approve water cut-off and removal of grinder pump and electrical for those who fail to pay for the grinder pump received in error
9) Approve changing our meeting date/time to the fourth (4th) Tuesday at 5:30 beginning August 2006

Action Items:
1) Prepare a letter regarding water/sewer provision and a Utility Service Agreement for the Hamdan Development
2) Request assistance from Congressman Boyd's aide to draft a letter to USDA-RD regarding connection of low density developments and other additional units
3) Send a letter and meet with Mike Smith opposing charges relative to the Timothy Brooks issue
4) Review Administrative wages and present a recommendation at the August meeting

Shirley Shinholser
Secretary